EVN Company presentation · - Production (2010/11): 3,000 GWh - Efficient and flexible thermal...

EVNCompany presentationSeptember 2012

2

EVN at a glanceInvestments and projectsFinancial performance Q. 1–3 2011/12Financial performance 2010/11

Agenda

3

Generation 3% NetworkInfrastructure

Austria16%

Energy Tradeand Supply

40%

Energy SupplySEE29%

EnvironmentalServices

12%

Generation7%

NetworkInfrastructure

Austria39%

Energy Trade

and Supply22%

Energy SupplySEE18%

Environmental Services

14%

Profile- Leading integrated Energy and Environmental

Services company serving customers in Lower Austria, SEE and CEE

- Key business areas: electricity, gas, heating, drinking water supply, wastewater treatment, waste incineration

- Group net profit (2010/11): EUR 189.7m (–8.4%)- Net cash flow from operating activities

(2010/11): EUR 522.0m (+4.6%)- Employees (2010/11): 8,250, ~70% abroad- Rating: A3, stable (Moody’s)

BBB+, stable (Standard & Poor’s)

Contribution by business segments

Key metrics (2010/11)Generation

- Electricity generation capacity: 1,873 MW(thermal: 1,434 MW; renewable: 439 MW)

- Production mix: 77% thermal, 23% renewable - Coverage ratio: 16.3%

Networks- Electricity: 134,308 km- Gas: 13,630 km- Heating: 602 km

Energy supply- Customers: 3.7 million- Sales volume: 28.8 TWh

Environmental Services- 0.5 million drinking water customers in Lower Austria- Waste incineration plants of 500,000 tons p.a. in Lower

Austria and 360,000 tons p.a. in Moscow- More than 93 drinking and wastewater plants servicing

about 14 million customers throughout Europe

Revenues1) EBITDA1)

1) Pre consolidation adjustments

EUR 2,729.2m EUR 471.4m

EVN at a glance

EVN at a glance

4EVN at a glance

EVN at a glance –active in 21 countries

Key geographic areas- Lower Austria and Germany- South Eastern Europe (SEE)- Central and Eastern Europe (CEE)

Activities- Lower Austria:

Energy business: full integrationEnvironmental services business: drinking water supply, wastewater treatment, waste incineration

- SEE:Electricity and heat distribution as well as gas operation

- CEE: drinking water supply, wastewater treatment and waste incineration

5

Business segments

Generation- Production (2010/11): 3,000 GWh- Efficient and flexible thermal fleet (coal, gas, oil)- Sizeable renewable energy portfolio- Projects in Austria, Albania and Bulgaria

Network Infrastructure Austria- Electricity and gas distribution networks in Lower

Austria- Cable TV and telecommunication networks in

Lower Austria and Burgenland

Energy Trade and Supply- Sourcing of electricity and primary energy- Sales to end customers in AT and GER- Trading on wholesale markets- Heat generation and sales in AT- ~15–16 TWh sales volumes p.a.

Energy Supply South East Europe- Electricity distribution and supply business in BG, MK- ~13 TWh sales volume- Heat generation and sales in Bulgaria- Project to build/operate natural gas network in Croatia

Environmental Services- AT: drinking water supply, wastewater treatment,

waste incineration- International project business: drinking water supply,

wastewater treatment, waste incineration- 18 Central and Eastern and SEE countries

Strategic Investments and Other Business- VERBUND - RAG- Burgenland Holding

EVN at a glance

6

EVN – strategic priorities

1 Selective generation asset growth

Market leadership in Austrian supply business

Required proven upside in SEE

Track record in environmental services business

Capitalise on strategic investments

Capital discipline and credit rating

2

3

4

5

6

EVN at a glance

Increase coverage ratio from 20% to 40%–60% Increase renewable generation from 30% to 50%

More than 60% of revenues and more than 80% of EBITDA from stable core Austrian business

Maintain high level of efficiency and profitability of regulated operations

Review of strategic stakes with focus on cash flow contribution and multi-utility strategy

Focus on enhanced credit standing Shareholder returns with review of CAPEX

and ROI by business segments

Constant review of profitability for SEE region Continue improvements in SEE

Competitive business model through integration Successful participation in more than 90 projects

7

Implementation of strategic goalsin 2010/11 and 2011/12

EVN at a glance

Expansion of renewable energy in Lower Austria and abroad- Wind: Four wind parks in Lower Austria (54 MW)

Kavarna, Bulgaria (16 MW) - Hydro: Acquisition of 13% of VERBUND Innkraftwerke GmbH in Bavaria

Capacity increase of existing small hydro power plants in Lower AustriaClear majority (70%) in the hydropower project “Gorna Arda” in BulgariaStart of the trail operations of the first part of Ashta in Albania (25 MW)

- Photovoltaic/biomass: Expansion of biomass capacity in the home market (> 60 in Austria)Completion of EVN’s largest photovoltaic plant in Bulgaria

Key investments in security of supply- Start of operation of the gas transportation pipeline “Südschiene” and construction begin of

“Westschiene” in Lower Austria- Construction begin of the gas grid expansion in Zadar, Croatia- First household customers connected to EVN gas grid on June 1st, 2012- Start-up of the cogeneration plant in Plovdiv, Bulgaria

8

77% 68% 68% 64% 64% 65%50%

23% 32% 32% 36% 36% 35%50%

0%

20%

40%

60%

80%

100%

05/06 06/07 07/08 08/09 09/10 10/11 long-term

Conventional power generation Renewables

56%69%

40%29%

19% 21% 18% 18% 16%

40%-60%

0%

10%

20%30%

40%50%

60%70%

02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 long-term

Generation mix

Coverage ratio

Market entranceBulgaria

Market entranceMacedonia

EVN at a glance

Increase coverage ratio and diversify generation portfolio

Increase coverage ratio long-term to 40%–60% on Group level

- Hold coverage ratio in CWE- Increase coverage ratio in SEE

Diversify generation portfolio- Increase renewable generation

up to 50% of output- Focus on wind in Austria and CWE- Focus on hydro in SEE

1

9

Ongoing projects to double generation output by 2020

1

Project Walsum Wind parks1) Ashta Gorna Arda Devoll Others2)

Fuel type Hard coal Wind Hydro Hydro Hydro VariousPro-rata investment (EURm) 402 173 105 350 400 n/aExpected COD 2013 2011/13 2013 2019 2016/19 n/a

1) Includes Austrian wind parks as well as Kavarna wind park 2) Contains smaller hydro power plants in Austria, cogeneration power plant in Plovdiv, Bulgaria

EVN at a glance

1.0001.410

1.583 1.608 1.692 1.820

1.873

2.746

410173 25

84 128

53119 1922.845

Status quo 2010/11 Walsum,Germany(financed)

Wind parks(partly financed)

Ashta,Albania

(financed)

Gorna Arda,Bulgaria

Devoll,Albania

Others

(Pro

-rat

a in

stal

led

capa

city

, MW

)

1) 2)

10

Majority of revenues and EBITDA generated in domestic and regulated businesses

2

Generation3% Network

InfrastructureAustria

16%

Energy Tradeand Supply

40%

Energy SupplySEE29%

EnvironmentalServices

12%

1) Pre consolidation adjustments2) International business includes Energy Supply South East Europe and the international project business of the Environmental Services Segment3) The regulated domestic business includes mainly the Network Infrastructure Austria (excl. cable and telecom activities) and the regulated international business

Energy Supply South East Europe

Revenue breakdown by segments 2010/111) Geographic revenue breakdown2)

Share of regulated EBITDA3)

80% 79% 76%

20%21%

24%373.4 416.6

471.4

0

100

200

300

400

500

08/09 09/10 10/11

EUR

m_

Austria International

Geographic EBITDA breakdown2)

47% 44% 46%

18% 17%18%

35%39%

35%373.3416.6

471.4

050

100150200250300350400450500

08/09 09/10 10/11

EU

Rm

Unregulated business Regulated international businessRegulated domestic business

EVN at a glance

Regulated: 53%

62% 62% 60%

6% 7% 9%

32% 31% 31%

2,727.0 2,752.1 2,729.2

0

500

1.000

1.500

2.000

2.500

3.000

08/09 09/10 10/11

EU

Rm

_

Austria CEE SEE

International: 40%

11

Regulated business in Austria

Network Electricity Gas CommentsReset date (Regulatory period length)

1 Jan 2014 (4 years)

1 Jan 2013 (5 years)

Next reset of WACC and X factor

RAB (EUR m) Not public Not public Capex retrospectively monitored each year

WACC (pre-tax, nominal) 7.0% 7.0% Set for length of regulatory period

X factor – sector (Xgen) 1.95% 1.95% X factor the same for all companies

X factor – company specific 0.25% 0.00% Additional X factor is company specific

Inflation Set annually Set annually Network Operator Price Index

50% of the efficiency gains during one regulatory period are passed on to end customers.

2

Source: E-Control 2010, company information

EVN at a glance

12

Regulated business in SEE

Electricity Bulgaria Macedonia

Regulatory authoritySEWRC

(State Energy and Water Regulatory Commission)

ERC (Energy Regulatory

Commission)Reset date (Regulatory period length)

1 Jul 2013 (5 years)

1 Jan 2015(3 years)

RAB (EUR m) Not public Not public

WACC (pre-tax, nominal) 12.0% 6.7265%

Accepted grid losses 15.0% 14.0%

X factor Yes No

3

EVN at a glance

Source: Regulators in Bulgaria (SEWRC) and in Macedonia (ERC)

13

Regulated business in South Eastern Europe

EVN buys energy from public provider at regulated prices and sells to end-customers at regulated prices

Bulgaria:

- District heating plant in Plovdiv

- Sales volumes (2010/11): 8,163 GWh

Macedonia:- Entire electricity distribution network run by EVN

- Sales volumes (2010/11): 5,233 GWh

Croatia:- Project to build and operate natural gas network in

Zadar, Sibenik and Split

- Customer potential: 130,000 households

Plovdiv

Skopje

BulgariaMarket entry in 2005

Macedonia Market entry in 2006

EVN at a glance

3

14

0

5

10

15

20

25

Bulg

aria

Mac

edon

ia

Cze

ch R

epub

lic

Aust

ria

Ger

man

y

EU-2

7

2008/09 2009/10 2010/11

54%

80%

100%

0%

20%

40%

60%

80%

100%

120%

EV

N in

Bulg

aria

EV

N in

Mac

edon

ia

EV

N in

Low

erAu

stria

Upside potential from SEE market development

3

17%15% 14% 13% 13% 12% 12%

24%22% 21%

17% 16%18%

04/05 05/06 06/07 07/08 08/09 09/10 10/11Grid losses, BG Grid losses, MK

Improvement ofgrid efficiency

1) In %, basis: Lower Austria = 100%

Illustrative electricity sales volumes per customer1)

Electricity prices for households (EUR cent/kWh)

EVN at a glance

15

Successful participation in 93 projects in 18 countries since 1983

Strong demand for infrastructure projects set to continue

Contract volume of EUR 1.3bn with attractive return potential from international projects

Underpinned by stable contributions from drinking water supply and wastewater treatment businesses

4

EVN at a glance

Competitive business model through integration of environmental services business

# 1 distributor and business-to-business natural gas supplier in Austria with export quota of above 50%

16

Capitalising on strategic investments and at-equity stakes

EVN at a glance

# 1 electricity producer in Austria with 8.6 GW installed capacity 12.63%

50.03%

73.63%

# 2 oil and gas producer in Austria, one of the largest gas storage operators in Central Europe with 5bn m³ working gas capacity by 2011

# 1 green energy producer in Austria with 242 MW installed capacity and local gas distributor

13.0%

16.51%

13 river-run plants with 312 MW installed capacity(EVN stake: 41 MW)

VERBUND-Innkraftwerke GmbH

5

17

32.244.3

60.4

-3.4 -3.1

9.4

42.1

50.1

22.123.1

25.0

-2.5

94.0

116.3

89.4

-10

10

30

50

70

90

110

130

08/09 09/10 10/11

EU

Rm

_

RAG BEWAG, BEGAS VERBUND Others

Strategic investments provide a significant contribution to EVN’s profit

- RAG and VERBUND are the main contributors

- Income from RAG increased by 36% from EUR 44.3m in 2009/10 to EUR 60.4m in 2010/11

- Contribution from VERBUND decreased due to lower dividend payment in 2010/11

- Contribution from Others decreased due to impairment for the hydropower project Ashta (EUR –21.3m)

EVN at a glance

Current contribution to net profit from investments

5

54% 50%

23%31%

22%18%1%1%339.8

381.2

050

100150200250300350400450

2010 2011

EU

Rm

Other revenuesOil sales & stockpiling of CERGas storageGas sales

18

RAG – Rohölaufsuchungs AG1)

1) Growth in of 51.6% in gas storage business from EUR 76m to EUR 116n based in substantial increase of capacities by start of Haidach and 7fields (now total capacity volume of about 5bn m³)

2) CER = Compulsory Emergency Reserves

Shareholder structure Revenue breakdown by segments

EBITDA, EBIT and Net profit

EVN at a glance

5

E.ON Ruhrgas

E&P GmbH30%

Steirische Gas-

Wärme GmbH10%Salzburg

AG10%

EVN50%

1)

111,0132,7

149.9

179.2

79,196,7

020406080

100120140160180200

2010 2011

EU

Rm

EBIT EBITDA Net profit

19

RAG – Rohöl-Aufsuchungs AG1)

Production statistics 2011

Gas production million m³ 270.5

Gas sales2) million m³ 695.0

Gas reserves million m³ 4,300

Oil production t 124,190

Oil reserves t 877,000

Oil tank storage capacity t 260,000

Total storage capacity

Working gas volume million m³ 5,001

Core areas of business- Oil and natural gas E&P- Gas storage

Concessions- Austria (5,414 km²)- Germany (3,136 km²)- Hungary (7,022 km²)- Poland (2,951 km²)

Storage facilities(Salzburg, Upper Austria)

- Haidach (JV with Gazprom andWingas; 2,656 million m³)

- Aigelsbrunn (100 million m³)- Puchkirchen (1,080 million m³)- 7Fields (JV with E.ON;

1,165 million m³)

5

EVN at a glance

1) Source: RAG

2) Sales of produced, swapped and traded gas

20

Strengthening of liquidity position

EVN at a glance

Capital increase of EVN AG by 10% to EUR 330m in October/November 2010- Net proceeds of EUR 175.5m from capital increase

Issuance of a corporate bond in October 2011- EUR 300m- Replacement of existing corporate bond - Tenor: 10.5 years, Coupon: 4.25%

Issuance of two private placements in March 2012- EUR 100m and EUR 25m- Tenor: 20 years, Coupon: 4.125%

Refinancing syndicated revolving credit facility of EUR 500m in June 2012

Financial flexibility through committed credit lines of EUR 175m (as per June 30th, 2012)

6

21

0.37 0.40 0.41

33.9% 34.7% 38.5%

0%

20%

40%

60%

80%

100%

0,0

0,1

0,2

0,3

0,4

0,5

08/09 09/10 10/11

Pay

out r

atio

EU

R

Dividend per share Payout ratio

RatingS&P: BBB+ / stableMoody’s: A3 / stableEVN aims at preserving a competitive investment grade credit rating

Increase in net debt and gearing ratio due to ongoing investments in Austria and SEENet debt can be easily covered by financial assets available for sale Financial policy going forward based on selected key ratios (on an unadjusted basis):

- Equity ratio >40% (30.9.2011: 46.2%)

- Net debt coverage (FFO) ≥ 23% (30.9.2011: 38.2%)

- Interest cover (FFO) ≥ 5x(30.9.2011: 7.6x)

- EVN intends to increase its dividend payout ratio up to 40% mid-term and to above 40% longer-term

Dividend per share

6

EVN at a glance

Solid capital structure and rating supports

1.458,21.579,2

1.739,3

48% 50%56%

0%

20%

40%

60%

80%

100%

0200400600800

1.0001.2001.4001.6001.800

09/10 10/11 Q. 1-3 11/12

Gea

ring

(%)

EU

Rm

_

Net financial debt Gearing

22

Debt maturity profile

Issue of a new corporate bond- EUR 300.0m

(10.5 ys; coupon 4.25%)- Redemption of corporate bond

(EUR 257.4m)

Issue of private placements- EUR 125.0m

(20.0 ys; coupon 4.125%)

Refinancing of syndicated loan - EUR 500.0m (5 ys)

Committed bilateral credit lines of EUR 175.0mShare of fixed interest debt: 76.0% Average financing costs: 4.2%

189,0

550,0235,0

733,0

20.0130.0

424.0

103.0

1,283.0

0

200

400

600

800

1.000

1.200

1.400

11/12 12/13 13/14 14/15 >2015

EU

Rm

__

Bank debt Bonds

6

EVN at a glance

23

0

10

20

30

40

50

60

70

80

90

2007 2008 2009 2010 2011 2012 2013

EU

R/M

Wh

forward

coal

gas procurement

electricity (base)

crude oil

Development of electricity and primary energy prices

Slightly decrease in electricity and coal pricesIncrease of gas pricesAverage price in euros for crude oil (Brent) at the level of the peak in 2008

EVN at a glance

24

Outlook 2011/12

Assumptions- Stable end customers business

development - Negative spreads between primary

energy and electricity prices- Stable order book in Environmental

Services segment and no negative impact due to economic downturn

EVN‘s expectations- Operating results can match prior-year level- Financial results above previous year’s level- Group net profit comparable to prior-year level

EVN‘s ambitions- Competitive investment grade credit rating

Key ratios (on an adjusted basis): Equity ratio: >40%Net debt coverage (FFO): >23%Interest Cover (FFO): >5x

- Capex discipline- Cash contribution from South Eastern Europe

and EVN‘s investments- Attractive dividend policy

EVN at a glance

25

Financial figures

EURmQ. 1–3

2011/12 2010/11 2009/10 2008/09 2007/08

Revenue 2,256.8 2,729.2 2,752.1 2,727.0 2,397.0

EBITDA 416.2 471.4 416.6 373.4 362.3

Group net profit 222.8 189.7 207.0 177.9 186.9Net cash flow from operating activities 275.3 522.0 499.3 335.3 382.6

Investments1) 184.9 415.7 394.0 415.7 415.6

Balance sheet total 6,894.7 6,870.4 6,731.2 6,695.4 6,636.3

Equity 3,120.4 3,176.0 3,025.3 3,127.2 3,208.5

Equity ratio 45.3% 46.2% 44.9% 46.7% 48.3%

Net debt 1,739.3 1,579.2 1,458.2 1,378.2 1,131.3

Gearing 55.7% 49.7% 48.2% 44.1% 35.3%

1) In intangible assets and property, plant and equipment

EVN at a glance

26


Agenda

27


Investments Q. 1–3 2011/121)

Investments down 25.0%

Key investments

- Generation:Wind parks in Lower Austria

- Network Infrastructure Austria:Construction of Westschiene

- Energy Trade and Supply:Expansion of heat networks and biomass capacities in Lower Austria

- Energy Supply South East Europe:+ Cogeneration plant in Plovdiv, Bulgaria+ Expansion of the network infrastructure and

replacement of metres in SEE+ Investments in natural gas network in Croatia

- Environmental Services:Cogeneration plant in Ljuberzy, Moscow

Investments and projects

40,213,8

79,1

74,1

9,3

9,0

78,6

69,3

38,3

15,6

1.0

3,1

0

20

40

60

80

100

120

140

160

180

200

220

240

260

Q. 1-3 10/11 Q. 1-3 11/12

EU

Rm

_

Strategic Investments and Other BusinessEnvironmental ServicesEnergy Supply South East EuropeEnergy Trade and SupplyNetwork Infrastructure AustriaGeneration

184.9

246.5

28

Strategy to double wind capacity by 2015

Austrian Green Electricity Act

Legal framework until 2011 Amendment 2012

> Off-take obligation for new plants at fixed feed-in tariffs (13 years)

> Eligibility of new renewables projects is subject to annual feed-in tariff constraints

Annual constraints too low in the past, creating substantial backlog of ready-to-build projects in Austria

Eastern part of Lower Austria =Attractive on-shore wind region

> One of the most attractive regions in Europe (due to strong wind conditions in the plain Danube and Pannonian area)

> “Lower Austrian Renewables Roadmap 2030”

Increase wind generation capacities in Lower Austria from 550 MW to 1,900 MW (2020) and 3,200 MW (2030)

> Legal goal to increase Austrian wind generation capacities from 1,011 MW to 2,000 MW (2020)

> Increase of annual feed-in tariff constraints to reduce backlog and achieve capacity growth

> Attractive wind feed-in tariffs 2012: EUR 95/MWh

> EVN’s focus on Lower Austria

> 190 MW installed capacities

> Strong negotiating powervis-à-vis turbine suppliers

> Wind park IRR (after tax) 7%–8%

Generate stable, regulatedcash flows on a long-term basis


29

EVN‘s windpower plants

12 windparks- Gänserndorf west (5 wind turbines)- Gänserndorf north (5 wind turbines)- Neusiedl / Zaya (5 wind turbines)- Prellenkirchen (8 wind turbines)- Japons (7 wind turbines)- Kettlasbrunn (20 wind turbines)- Obritzberg (13 wind turbines)- Markgrafneusiedl (10 wind turbines)- Tattendorf (8 wind turbines)- Pöttelsdorf (4 wind turbines)- Glinzendorf (9 wind turbines)1)

- Kavarna, Bulgaria (8 wind turbines)

Total capacity: 190 MW- As of September 30th, 2011: 138 MW

Electricity for more than 100,000 households


1) 50:50 JV with Wien Energie AG

30

Total capacity of 278 MW1)

70 hydropower plants in totalElectricity for some 165,000 households

Hydropower plants in Lower Austria

River Inn- 13% stake in VERBUND-Innkraftwerke

GmbH- Capacity: 41 MW (EVN stake)

Schütt- Capacity: 2 MW- 2,700 households- Investments: EUR 9.5m

Schaldorf- Capacity: 1 MW- 1,500 households- Investments: EUR 6m

© VERBUND


Kleinwasserkraftwerk Schaldorf

1) Including purchasing rights from hydropower plants

31

Hydropower plant projects in Albania

Project Ashta on the Drin River- 50:50 JV with VERBUND - Capacity: 50 MW - Generation: ~240 GWh p.a. - Supply of 100,000 households- Concession period: 35 years- Start of operations: 2012/13- Start of trail operations of the first part

in June 2012 (25 MW)

Project Devoll- 50:50 JV with Statkraft (Norway) - 3 hydropower plants - Capacity: 275 MW - Generation: ~800 GWh p.a. - Concession period: min. 35 years - Start of operations: 2016/19


Project Ashta on the Drin River

32

Gorna Arda- 70% EVN stake, 30% NEK- River Arda, South Eastern Bulgaria- Total capacity: 120 MW – 170 MW

(depending on particular expansion stage)

- Generation: ~350 GWh p.a. - Total investments: up to EUR 500m- Start of operations: 2018/19


Hydropower plant project in Bulgaria

33

Total capacity:- More than 60 plants- Thermal capacity: 178 MW- 1.5 million m³ of wood chips- Electricity and heat supply for more than

20,000 households

Biomass plants in Lower Austria

Expansion of biomass capacity- Hagenbrunn

(Investments: EUR 3.6m)- Langenlois

(Investments: EUR 2.3m)- Hollabrunn, Waidhofen, Aschbach

(acquisitions)

Biomass plants under construction- Steyr

(Investments: EUR 36.0m)- Amstetten

(Investments: EUR 0.7m)- Markt Piesting

(Investments: EUR 0.6m)


34

Photovoltaic plants in Bulgaria

Blatets- Start of operations: May 2010- Total capacity: 836.7 kWp- Investments: EUR 3m - CO2 savings: 280 t p.a.

Trastikovo- Start of operations: July 2011- EVN‘s largest photovoltaic park- ~25,000 modules- Total capacity: 1,995 kWp- Generation: ~2.4 GWh p.a.- Investments: EUR 5m- CO2 savings: 2,000 t p.a.


35

Cogeneration plantin Bulgaria

Plovdiv- Generation of electricity and heat - Start of construction: 2009/10- Start of operations: December 2011 - Capacity:

Electricity: 50 MW Heat: 54 MW

- Investments: EUR 50m- Supply of ~33,600 households- Most modern cogeneration plant in

the Balkans- Increasing the security of energy

supplies


36

Gas supply in Lower Austria

Südschiene- Gänserndorf-Semmering- Completion: July 2011- Gas pipeline: ~120 km - Investments: EUR 114m

Westschiene- Auersthal-Amstetten- Start of construction: June 2011- Completion: ~September 2013- Gas pipeline: 143 km - Investments: EUR 150m


37

Gas supply in Croatia

Concessions to build and operatea natural gas distribution networkon the Dalmatian coast

- Three counties: Zadar, Split andSibenik

- Concession period: 30 years- Total pipeline length: 1,450 km- ~130,000 households- Start of construction: April 2011

(Zadar)- First household customers connected

to EVN gas grid on June 1st, 2012


38

Waste incineration plants

Dürnrohr, Lower Austria- Line 3- Start of operation: early 2010- Total capacity: 500,000 t p.a. of

household residual waste, bulky waste, industrial and commercial waste materials treated

- State-of-the-art and largest waste incineration plant in Europe

- Ecologically best possible waste treatment and transportation of waste and residual waste by train

Moscow- Total capacity: 360,000 t p.a.- Investments: EUR 175m- Start of operation: 2008- EVN operation: 13 years


39

Waste incineration plant project

Moscow- December 2009: Acceptance of a

tender to construct another waste treatment plant in Moscow

- Total capacity: 700,000 t p.a. - Investments: EUR 575m- Start of operations: 2014


40


Agenda

41

Business development

Weather-related revenue developmentStable EBITDA

- Operating expenses up 4.0%

Higher EBIT- Impairment loss of EUR 22.2m vs.

EUR 17.7m in the prior-year period

Positive development of financial results

- Higher income from investments in equity accounted investees

Weather-related decrease of net CF from operating results

EURm2011/12

Q. 1–3Change

in %

Revenue 2,256.8 4.3

EBITDA 416.2 5.5

EBIT 226.1 6.1

Financial results 65.6 5.9

Group net profit 222.8 7.5Net cash flow from operating activities 275.3 –40.9

EUR

Earnings per share 1.24 6.4

Business development

Financial performance Q. 1–3 2011/12

42

EBITDA development by segments

Generation EnvironmentalServices

Energy Trade and Supply


Network Infrastructure Austria

Generation: power request on the part of the German Federal Network Agency; revision in natural gas price between Gazprom and EconGas; new wind park capacities, higher hydro and wind power production coefficientsEnergy Supply SEE: weather-related sales volumes increase, higher end customer pricesEnvironmental Services: slightly lower operating expenses

51,9

18,8

45,8

71,6

106,0

74,0

171,8182,4 173,7

51,4 49,6

76,8

25,8 44,948.9

22,2 34,236,3

57,0%

27,6%

45,0%

7,3%11,1%

8,0%

44,2% 46,3%43,3%

7,5% 7,8%10,4%

14,6%18,4% 20,0%

0%

10%

20%

30%

40%

50%

60%

70%

0

20

40

60

80

100

120

140

160

180

200

Q. 1-309/10

Q. 1-310/11

Q. 1-311/12

Q. 1-309/10

Q. 1-310/11

Q. 1-311/12

Q. 1-309/10

Q. 1-310/11

Q. 1-311/12

Q. 1-309/10

Q. 1-310/11

Q. 1-311/12

Q. 1-309/10

Q. 1-310/11

Q. 1-311/12

Mar

gin

(%)

EU

Rm

__

EBITDA Profit before tax EBITDA Margin


43

Generation

Electricity generationvolumes (GWh)

2011/12 Q. 1–3

Change in %

Total 1,974 –17.2thermal energy sources 983 –40.1renewable energy sources 991 33.4

Financial performanceEURm

Revenue 101.7 49.1EBITDA 45.8 –EBIT 8.5 –

Reduced use of EVN’s own thermal power stations

- Negative spark spreads

Revenue increase- Power request by the German

Federal Network Agency- Revision in natural gas prices

between Gazprom and EconGas- New wind park capacities- Higher wind and hydropower

production coefficients

EBIT increase despite- Impairment losses

- Biomass pilot plant EUR 8.0m in Dürnrohr

- Wind park Kavarna EUR 9.8m in Bulgaria


44


End customer price adjustments1)

Natural gas (4/1/2011) +8.9%

(10/1/2011) +3.6%

Electricity (1/1/2012) –1.7%

Sales volumes to end customers (GWh)

2011/12 Q. 1–3

Change in %

Electricity 5,636 2.3Natural gas 5,858 –4.9Heat 1,472 3.5


Revenue 930.4 –2.3EBITDA 74.0 –30.2EBIT 61.6 –35.7

1) Average, household sector (source: EVN)

Diverse sales volumes development- Electricity: increase due to business

extension of EAA outside of Lower Austria

- Natural gas: decrease due to reduced use of EVN‘s own thermal power plants and higher temperatures

- Heat: increase due to large customers and higher sale to the district heating transport pipeline in St. Pölten

Revenue decrease- Decrease of end customer price for

electricity and adjustments in natural gas prices

EBITDA decrease- Higher procurement costs for electricity- Provision for impending losses related to

power plant project Duisburg-Walsum in Q2 2011/12


45


Tariffs adjustments1)

Electricity (1/1/2012) –

Natural gas (1/1/2012) –1.9%

Network distribution volumes (GWh)

2011/12Q. 1–3

Change in %

Electricity 5,951 0.3Natural gas2) 13,356 –6.4


Revenue 401.1 1.8EBITDA 173.7 –4.8EBIT 100.6 –8.6

1) Average, according to the regulator in Austria (E-Control)2) Including network sales to EVN‘s power stations

Diverse distribution sales volumes- Electricity: at prior-year level- Natural gas: drop due to reduced use

of EVN’s own thermal power plants and higher temperature

Adjustment of network tariffs Decrease of EBITDA and EBIT

- Higher procurement costs - Higher maintenance and repair costs


46


Electricity price adjustments1)

Bulgaria (7/1/2010) electricity +2.0%

(7/1/2011) electricity +1.9%

(4/1/2011) heat +6.8%

Macedonia (3/1/2011) +4.9%2)

(1/1/2012) +4.8%2)

Network distribution volumes(GWh)

Electricity3) 10.758 3.8

Heat 230 5.3


Revenue 736.3 16.0EBITDA 76.8 55.0

EBIT 28.7 –

1) Average, household sector, according to the regulators in Bulgaria (SEWRC) and Macedonia (ERC)2) EVN Macedonia3) In Bulgaria and Macedonia energy sales volumes fairly equal present network distribution volumes

Electricity generation increased by 90.6%Temperature-related sales volumes increase

- BG: heating degree +16.5%p- MK: heating degree +19.9%p

Revenue increase- Weather-related hike of sales volumes- Electricity and heat price adjustments

Increase of EBIT from EUR –12.5m despite

- Higher prices for procured energy- Increased write-offs of receivables


47


Stable revenue- International project business:

stable contribution- Domestic water supply business:

increased revenue- Waste incineration: lower contribution

Financial results down- Decreasing interest income related

to the ongoing redemption of projects during the operational phase

Market entry- Wastewater treatment plant in

Prague (CZ) (turn-key project)- Drinking water treatment plant in

Serbia (BOOT project)


2011/12 Q. 1–3

Change in %

Revenue 244.3 0.3EBITDA 48.9 8.9EBIT 29.2 11.7Financial results 7.1 –11.7Profit before income tax 36.3 6.1


48

Financial results

Financial results increasedHigher income from investments in equity accounted investees

Lower interest results- Higher interest expenses

- Higher net debt- Slightly higher interest rates

- Lower interest income

41,0

69,4

82,3

53,8

25,5

25,1

-22,2

-30,2

-39,4

-0.5

-2,9

-2.5

-50 -30 -10 10 30 50 70 90 110

Q. 1-3 09/10

Q. 1-3 10/11

Q. 1-3 11/12

EURm_

Income from investments in equity accounted investeesGain from other investmentsTotal interest resultsTotal other financial results


49

Solid capital structure and rating supports

6.731,2 6.870,4 6.894,7

3.025,3 3.176,0 3.120,4

44,9% 46,2% 45,3%

0%

20%

40%

60%

80%

100%

0

2.000

4.000

6.000

8.000

FY 09/10 FY 10/11 Q. 1-3 11/12

Equ

ity ra

tio (%

)

EU

Rm

Total assets Equity Equity ratio

1.458,21.579,2

1.739,3

48,2% 49,7%

55,7%

0%

20%

40%

60%

80%

100%

0

500

1.000

1.500

2.000

FY 09/10 FY 10/11 Q. 1-3 11/12

Gea

ring

(%)

EU

Rm

_

Net financial debt Gearing


50

Cash flow

Higher gross CF- Higher profit before tax - Higher non-cash earnings components

Decrease of net CF from operating activities

- Stronger seasonal effect in working capital

Change of net CF from investing activities

- Lower investments in intangible assets and property, plant and equipment

- Lower capital payment for investments in equity accounted investees

- Acquisition of additional stake in EVN’s Bulgarian subsidiaries

- Sales of current investments in securities

Decrease of net CF from financing activities

- Capital increase in the prior-year

EURm2011/12

Q. 1–3Change

in %Gross cash flow 445.0 4.3Net cash flow from operating activities 275.3 –40.9Net cash flow from investing activities –233.3 45.4Net cash flow from financing activities –25.6 –Net change in cashand cash items 129.1 –17.3

184,9

246,5

445,0

426,6

0 100 200 300 400 500

Q. 1-3 11/12

Q. 1-3 10/11

EURm__

Gross cash flow

Investments in intangible assets, property, plant and equipment


51


Agenda

52

Group results 2010/11

Revenue drop in the energybusiness offset by positive development in Environmental Services segmentHigher EBIT due to one-offsNegative development in financialresults

- Lower dividend paid by VERBUND- Decline in interest and other financial

results

Strong cash flow generationDecrease of earnings per share

- Lower Group net profit- Increased number of outstanding

shares following the capital increase

Higher dividend payout ratio

EURm 2010/11 Change in %

Revenue 2,729.2 –0.8EBITDA 471.4 13.2

EBIT 218.7 16.8

Financial results 41.8 –50.0

Group net profit 189.7 – 8.4 Net cash flow from operating activities 522.0 4.6

EUR

Earnings per share 1.07 –16.1

Dividend per share 0.41 2.5

Financial performance 2010/11

53

Asset impairments 2010/11

Impairment tests, EURm 2010/11 2009/10

1. Gas-fired power plants –38.4

2. Procurement rights at hydropower plants +31.2

3. TEZ Plovdiv / Gas power plant side in Plovdiv –17.7

4. Others –4.2 –10.7

Effects in operating results –29.1 –10.7

5. Hydropower project Ashta –23.1

Effects in financial results –23.1

Assumptions used at impairment tests:

- High gas sourcing costs from long-term supply contracts and the elimination of free CO2 certificatesas of 2013

- Hydropower plants are gaining importance

- Ongoing adverse regulation in the Bulgarian heating business

- Delay in liberalising the Bulgarian market and postponed plans to construct a gas-fired power plant

- Lower expectations on proceeds from the sale of Certified Emission Reductions


54

EBITDA development by segments

Generation: falling spreads between electricity and primary energy pricesEnergy Trade and Supply: positiv economic development and one-off effects due tothe use of provisions from previous year for impending lossesEnvironmental Services: higher or first-time earnings contribution of new projects

84.2

52.5

32.1 33.4

57.3

103.9

64.9 69.0

86.8

159.1

191.4 190.4

42.052.3 68.9

45.1 46.554.8

57.6%44.3%

33.1%

2.8%4.8%

8.9%7.4% 8.0% 10.4%

34.0%

39.1% 39.8%

17.0% 18.3% 19.9%

0%

10%

20%

30%

40%

50%

60%

0

20

40

60

80

100

120

140

160

180

200

220

08/09 09/10 10/11 08/09 09/10 10/11 08/09 09/10 10/11 08/09 09/10 10/11 08/09 09/10 10/11

Mar

gin

(%)

EU

Rm

_

EBITDA PBT EBITDA Margin

Generation EnvironmentalServices





55

Generation

Electricity generationvolumes (GWh) 2010/11 Change

in %Total 3,000 –9.2thereof thermal energy sources 1,998 –8.5

thereof renewable energy sources 1,002 –10.4

EURmRevenue 97.1 –18.2EBITDA 32.1 –38.9EBIT –3.6 –

Decrease in energy generation volumes

- Lower power generating volumes at EVN‘s own thermal power stations

- Lower water flow conditions

Revenue and EBIT drop- Declining spreads between electricity

and primary energy prices in option value of power stations

- Impairments:

EUR –38.4m Theiß and Korneuburg

EUR +31.2m revaluation of purchase rights at hydropower plant Freudenau


56


End customer price adjustments1)

Gas (12/1/2009) –7.0%(4/1/2011) +8.9%

Sales volumes to end customers (GWh) 2010/11 Change

in %Electricity 7,143 1.8Natural gas 6,475 –3.9Heat 1,678 6.9

EURmRevenue 1,164.3 –1.9EBITDA 103.9 81.5EBIT 88.8 –

1) Average, household sector (EVN Source)

Higher sales volumes to end customers

- Electricity: economic upswing and expansion of EnergieAllianz outside Austria

- Heat: higher sales of steam and heat to key accounts

Decrease in revenue despite higher sales volumes

- Adjustment in gas prices for end customers

- Decrease in marketing proceeds from power plants

EBITDA and EBIT increase- Lower primary energy costs due to:- One-off effects due to usage of

provisions for impending losses- Reduced purchasing volumes

because of reduced operation of own power plants


57

Energy SupplySouth East Europe

Electricity price adjustments1)

Bulgaria (7/1/2010) +2.0%(7/1/2011) +1.9%

Macedonia (1/1/2010) +5.1%(3/1/2011) +4.9%

Network distribution volumes (GWh) 2010/11 Change

in %Electricity 13,396 1.6Heat 233 –7.9

EURmRevenue 834.3 –3.2EBITDA 86.8 25.8EBIT 9.7 12.7

1) Average, household sector, according to the regulators in Bulgaria (SEWRC) and Macedonia (ERC)

Sales volumes development- Higher electricity sales volumes

in Bulgaria and Macedonia

Revenue decrease- Bulgaria: mainly due to changed

reporting of tariff components (effect: EUR 46.9m)

- Macedonia: higher sales volumes and positive price effects in 2010 and 2011

Decrease in operating expenses - Changed reporting of procurement

costs in Bulgaria and usage of provisions for impending losses in Bulgaria

- Lower personnel expenses and write-offs of receivables in Macedonia

EBIT improvement despite- Impairment of goodwill at TEZ Plovdiv

and impairment of property, plant and equipment of the Plovdiv power plant site totaling EUR 17.7m


58


Tariffs adjustments1)

Electricity (1/1/2011) +1.0%Gas (1/1/2011) +10.6%

Network distribution volumes (GWh) 2010/11 Change

in %Electricity 7,754 2.4Natural gas2) 16,415 –11.4

EURmRevenue 478.8 –2.1EBITDA 190.4 –0.5EBIT 91.7 –3.2

1) Including network sales to EVN‘s power stations2) Average, according to the regulator in Austria, E-Control

Diverse network distribution volumes- Electricity distribution volumes:

increase due to economic upswing in the first half-year 2010/11

- Gas distribution volumes: decrease despite cold weather due to lower sales to EVN‘s own thermal power stations

Decrease of EBITDA and EBIT- Higher cost of materials - Higher depreciation


59


Revenue increase due to higher or first-time full year earnings contribution of projects

- Waste incineration plant and sodium hypochlorite plant in Moscow

Strong EBITDA and EBIT increase New business

- Concession for wastewater treatment in Slovenia


Revenue 346.9 21.6EBITDA 68.9 31.8EBIT 42.9 53.2Profit before income tax 54.8 17.8

EUR bnContract value1) 1.3

1) As of September 30th, 2011


26.6

54.7

47.4

62.9

61.6

46.7

-41.1

-31.9

-38.5

-6.5

-0.8

-4.7

41.8

83.6

50.8

-50 -30 -10 10 30 50 70 90 110 130 150EURm_

Gain from other investmentsIncome from investments in equity accounted investeesTotal interest resultsTotal other financial results

60

Financial results 2010/11

2008/09

2009/10

2010/11

Financial results dropped by 50%Earnings contribution from investments fell

- Higher results from investments in equity accounted investees:

RAG:up from EUR 44.3m to EUR 60.4m

BEWAG/BEGAS:up from EUR –3.1m to EUR 9.4m

Impairment for hydropower project Ashta (EUR –21.3m)

- Lower gain from other investments

VERBUND AG: drop by EUR 28.7m to EUR 22.1m

Drop in total interest results- Higher level of financial liabilities- Higher interest rates


61

Balance sheet

Increase of total assets- Increase in equity accounted

investees

13%-stake VERBUND-Innkraftwerke

Contribution to capital increase of VERBUND AG

Increase in net debt- Slightly higher gearing but within EVN

framework to maintain competitive investment grade

88.5% 11.5%

Non-current assets Current assets

1) Compared to September 30th, 2010

EURm 2010/11 Change in %1)

Total assets 6,870.4 2.1

Equity 3,176.0 5.0

Equity ratio (in %) 46.2 1.3p

Net debt 1,579.2 8.3

Gearing (in %) 49.7 1.5p

46.2% 39.5% 14.3%

Equity Non-current liabilities Current liabilities


62

Cash flowHigher gross CF

- Lower profit before income tax- Higher depreciation and amortisation- Lower non-cash income from investments in

equity accounted investees- Lower non-current provisions

Increase of net CF from operating activities

- Decrease of current balance sheet items- Higher net cash outflow from investing

activities and liabilities

Decrease of net CF from investing activities

- Decrease of current securities- Higher capital payment for investments in

equity accounted investees- Increase in lease receivables in the

Environmental Services segment

Decrease of net CF from financing activities

- Redemption of liabilities - Despite net proceeds of capital increase


Gross cash flow 478.1 2.2Net cash flow from operating activities 522.0 4.6

Net cash flow from investing activities –511.6 –11.9

Net cash flow from financing activities 13.1 –77.1

Net change in cashand cash items 23.5 –

415.7

394.0

478.1

467.7

0 100 200 300 400 500

10/11

09/10

EURm__

Gross cash flow

Investments in property, plant and equipment and intangible assets


63

63.4 48.9 70.8

161.5 156.5

160.9

32.521.5

25.3

104.8

100.7

112.5

67.4

68.6

48.3

415.7

394.0 415.7

0

50

100

150

200

250

300

350

400

450

500

08/09 09/10 10/11

EU

Rm

_





Generation


Investments 2010/111)

Investments up 5.5%

Key investments

- Generation:Wind power and small-scale hydro power projects in Lower Austria

- Network Infrastructure Austria:Construction of the natural gas transportpipelines „Süd- and Westschiene“

- Energy Trade and Supply:Expansion of heating networks

- Energy Supply South East Europe:Expansion of the network infrastructure andreplacement of metersConstruction of the new cogeneration plant in Plovdiv

- Environmental Services:Combined cycle heat and power cogeneration plant in Moscow


64

Additional information

Stefan SzyszkowitzCFOPhone: +43 2236 200-12132Fax: +43 2236 200-82132E-mail: [email protected]

Klára SzékffyHead of Investor RelationsPhone: +43 2236 200-12745Fax: +43 2236 200-82745E-mail: [email protected]

Investor information on the webwww.evn.atwww.investor.evn.atwww.responsibililty.evn.atE-mail: [email protected]

EVN AGHeadquartersEVN Platz2344 Maria Enzersdorf

65

Certain statements made in this presentation may constitute „Forward-Looking Statements” within the meaning of the U.S. federal securities law. Forward-looking information is subject to various known and unknown risks and uncertainties. These include statements concerning our expectations and other statements that are not historical facts.The Company believes any such statements are based on reasonable assumptions and reflect the judgement of EVN’s management based on factors currently known by it.No assurance can be given that these forward-looking statements will prove accurate and correct, or that anticipated, projected future results will be achieved.For additional information regarding risks, investors are referred to EVN’s latest Annual report.

Disclaimer

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